Microsoft plans to raise the price of its perpetually-licensed Office suite by 10% in October.

The increases are part of a larger strategy, said Wes Miller, an analyst and licensing expert with Directions on Microsoft. “If you add all of these motions up, and look at other lightly-announced price increases, it clearly points towards encouraging customers that have avoided licensing Office 365, or now Microsoft 365, to…look again,” Miller tweeted.

Microsoft announced the price increase on its partner network website on Wednesday. “Office 2019 commercial prices will increase 10% over current on-premises pricing,” the company said. According to a separate FAQ (download PDF), the Office 2019 price jump “represent(s) the significant value added to the product over time and … better reflect costs and customer demand and align with cloud pricing.

Other price increases coming
The application bundle will not be the only component to see a price increase. Also slated for an Oct. 1 boost will be prices for on-premise servers, including Windows Server 2019 Standard Edition and what Microsoft dubs “productivity servers,” which include Exchange, SharePoint Server and Project Server. Those servers’ prices will climb by 10% as well.

Perhaps even more importantly, the CALs (client access licenses) required for personal computers to connect to, and access information on, Microsoft’s server software, will jump up, too. Prices for the Enterprise CAL and Core CAL – suites that bundle several separate CALs – will go up by 10%, but the RDS per Device CAL (RDS stands for Remote Desktop Service) will climb 30%, Microsoft said, “to match the per user price.”

The last time Microsoft raised prices on the perpetual license version of Office was in 2010, with the debut of Office 2010.

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